Freshpet (NASDAQ:FRPT – Get Free Report) and Mama’s Creations (NASDAQ:MAMA – Get Free Report) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.
Institutional & Insider Ownership
45.2% of Mama’s Creations shares are owned by institutional investors. 4.4% of Freshpet shares are owned by insiders. Comparatively, 6.5% of Mama’s Creations shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings for Freshpet and Mama’s Creations, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Freshpet | 1 | 6 | 8 | 0 | 2.47 |
| Mama’s Creations | 0 | 1 | 3 | 0 | 2.75 |
Profitability
This table compares Freshpet and Mama’s Creations’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Freshpet | 3.23% | 4.82% | 3.21% |
| Mama’s Creations | 3.34% | 17.41% | 9.10% |
Valuation and Earnings
This table compares Freshpet and Mama’s Creations”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Freshpet | $975.18 million | 2.62 | $46.92 million | $0.67 | 78.31 |
| Mama’s Creations | $123.33 million | 3.20 | $3.71 million | $0.11 | 88.55 |
Freshpet has higher revenue and earnings than Mama’s Creations. Freshpet is trading at a lower price-to-earnings ratio than Mama’s Creations, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Freshpet has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, Mama’s Creations has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.
Summary
Mama’s Creations beats Freshpet on 8 of the 14 factors compared between the two stocks.
About Freshpet
Freshpet, Inc., together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online. The company was incorporated in 2004 and is headquartered in Secaucus, New Jersey.
About Mama’s Creations
Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.
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